VIA3 Reduces ESG Complexity and Improves ESG Ratings
Third Economy’s VIA3 Framework defines sustainability in five key aspects: Values, Impact, Analysis, Alignment and Activism. We illustrate “how” an entity may or may not be sustainable with the VIA3 compass. This provides an easy-to-understand analysis that helps to quickly locate sustainable investment products and determine how a product aligns with investment priorities.
Strong
Strong support of sustainability principles
Moderate
Moderate support of sustainability principles
Minor
Minor support of sustainability principles
The greener the VIA3 compass, the more
sustainable the portfolio
100-point scale
The VIA3 Framework assesses five criteria to improve ESG ratings – Values, Impact, Analysis, Alignment and Activism – illustrated by the VIA3 compass.
Values: Avoids or directs investments based on moral principles of sustainability
Impact: Consequences to the environment and society
Analysis: ESG (Environmental, Social, Governance) assessment in buying and selling portfolio securities
Alignment: Consistency between an entity’s culture and product and
services positioning
Activism: How an entity engages with stakeholders to encourage transparency and more sustainable practices
VIA3 Empowers Investors to Make Better Decisions
The VIA3 Framework empowers investors to align with the social and environmental factors that they care about most. Developed with leading institutional investors and validated by academics, VIA3 delivers insights to create and select sustainable products and assets. VIA3 leads the way to a more sustainable portfolio and economy – a third economy.
VIA3 Evaluates Five Key Aspects of Sustainability
Values: Are the business activities aligned with an investor’s values, morals or ethics?
The VIA3 Values criteria assesses alignment with moral or ethical considerations, typical for those interested in sustainability, historically known as Socially Responsible Investing (SRI).
Impact: Every investment has an impact. Can you measure what it is?
The VIA3 Impact criteria reflects the actual consequences on society and the environment, or “what” results from an entity's products and services, aligned with the UN Sustainable Development Goals (SDGs).
Analysis: How do Environmental, Social and Governance (ESG) factors drive long-term financial performance?
The VIA3 Analysis criteria reflects "how" entities manage ESG considerations for long-term financial value creation based on the Sustainability Accounting Standards Board (SASB).
Alignment: Is the entity’s culture consistent with how they position their products and services?
Do you care if you purchase products and services from entities that run their organizations consistent with principles of sustainability? The VIA3 Alignment criteria assesses the consistency between how the company conducts its business and the marketing/position of their products and services.
Activism: Does the entity engage in the world to affect positive environmental and social change?
How an entity engages with stakeholders is what we refer to as activism. The VIA3 Activism criteria assesses the extent to which an entity encourages transparency and more sustainable practices.